TFS concludes Silvalake adviser rescue
By Jason Spits
TotalFinancial Solutions Australia(TFS) has concluded the takeover of just under half of the advisers working under the Silvalake Financial Services Group banner.
TFS offered a new home to the advisers after problems with the insurance brokerage division of Silvalake led to the closure of the whole business, effectively shutting the advisers out from their clients and remuneration through trails and commissions.
TFS managing director Michael Scott says the group has taken on 55 advisers working with Silvalake and the addition of those planners boost numbers to around 100, giving the company increased exposure across the country.
“Because the Silvalake advisers were effectively unable to operate in the market, the challenge was to bring them across under our licence quickly, but in a way that met our own internal processes — a process that would ensure the new advisers complied with our own AFSL standards and those required by ASIC guidelines.
“We had originally approached the Silvalake Group as part of our strategy to increase our distribution and provide a national presence. With their key geographic support in Western Australia and Queensland, they complemented our own distribution in New South Wales, Victoria and South Australia,” Scott says.
TFS had entered into negotiations with Silvalake earlier this year when it became clear the whole group would be under pressure due to the issues in the brokerage division.
The liquidation of Silvalake was court-appointed on February 4, with the group assenting to the move according to Jason Bettles, principal with provisional liquidator Downie and Associates.
Bettles says Downie and Associates became the provisional liquidator for Silvalake Insurance Brokers, which holds the brokerage, insurance and financial planning authorities, after Silvalake indicated it could not make remittances to general insurance group Allianz, sparking the closure.
AUTHOR
Jason Spits
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